As we head into the final months of 2025, the housing market in Britain is showing some interesting trends. According to a recent report from property website Rightmove, the average price of a newly listed home has dropped by over £5,000 in November. This represents a 1.4% decrease from the previous month, which is higher than the typical 0.8% drop seen at this time of year.
In October, there was a slight increase in prices by 0.3%, which was lower than the usual 1.3% rise for that month. This marks the second consecutive month of weaker price growth than expected. Rightmove predicts that asking prices will increase by 4% overall in 2025, but the market remains price-sensitive, with high competition among sellers.
Tim Bannister, Rightmove’s director of property science, remains optimistic about the market, stating that the overall market activity is more positive compared to last year. He anticipates a stronger 2025 in terms of both prices and the number of homes sold, especially if mortgage rates continue to drop, making homes more affordable for buyers.
Despite a drop in buyer inquiries after the autumn Budget, there has been an increase in demand following the recent Bank of England base rate cut. However, Rightmove still expects a seasonal slowdown in home-moving activity leading up to Christmas. Mr. Bannister emphasizes the importance of mortgage rates in shaping market activity in the coming year.
Looking ahead to 2025, there is cautious optimism about the housing market. The momentum seen this year is expected to continue, particularly if mortgage rates decrease further. Sellers will need to price their homes attractively to secure buyers in a market with a high inventory of homes for sale.
Overall, while there may be some fluctuations and challenges in the housing market in the coming year, the general outlook is positive. With the right conditions, 2025 could be a strong year for both buyers and sellers in the British housing market.
